Debt Reduced by More Than $100 Million Since the Beginning of 2004
DENVER, Oct. 4 /PRNewswire-FirstCall/ -- TeleTech Holdings, Inc.
(Nasdaq: TTEC), a leading global provider of customer management and business
process outsourcing solutions, today announced that it has reduced debt by an
additional $57 million during the third quarter ended September 30, 2004.
This was achieved via a combination of excess working capital and tax planning
strategies, some of which are still ongoing, that provided access to existing
cash resources previously held offshore.
Since the beginning of 2004, TeleTech has reduced debt by $109 million, or
more than 90 percent, and TeleTech expects to repay the remaining $7 million
outstanding under its revolving credit facility by the end of 2004.
As a part of the third quarter debt reduction TeleTech elected to
terminate an interest rate swap agreement on September 30, 2004, that was
originally scheduled to expire in December 2006. The interest rate swap
agreement related to outstanding borrowings of $38 million under TeleTech's
revolving credit facility. While the termination of the interest rate swap
agreement will result in a $2.8 million pre-tax cash charge, or approximately
$0.02 cents per diluted share in the third quarter of 2004, TeleTech's
decision to pay off the $38 million in debt and terminate the swap agreement
is anticipated to result in future pre-tax net interest expense savings of
$4.7 million from October 2004 through December 2006.
Dennis Lacey, chief financial officer, said, "Our return to profitability
in 2004 and enhanced tax planning strategies have enabled us to repay more
than $100 million in debt this year and we believe we will be virtually debt-
free by the end of the year. Going forward we expect to continue to generate
cash flow from operations and this combined with our $100 million revolving
credit facility provides us increased flexibility and liquidity to finance our
future growth."
ABOUT TELETECH
TeleTech Holdings, Inc. (Nasdaq: TTEC), a leading global provider of
customer management and business process outsourcing solutions, strengthens
customer relationships for its clients by providing a combination of
technologies, processes, and professional services. Headquartered in Denver,
Colo., TeleTech's worldwide capabilities are supported by more than 33,000
professionals in North America, Latin America, Asia-Pacific, and Europe. For
additional information about TeleTech Holdings, Inc., visit www.teletech.com.
FORWARD-LOOKING STATEMENTS
This press release may contain certain forward-looking statements relating
to future results. The Private Securities Litigation Reform Act of 1995
provides a safe harbor for forward-looking statements. These forward-looking
statements are subject to risks and uncertainties that may cause TeleTech's
and its subsidiaries' actual results to differ materially from those expressed
or implied by such forward-looking statements, including but not limited to
the following: the ability to generate cash flow from operations and be
virtually debt-free by the end of 2004; the ability to realize anticipated
interest expense savings from current and ongoing debt reduction plans; under
U.S. generally accepted accounting principles revenues, expenses, and profits
associated with the launch of new client agreements may be expensed up front
or deferred over the life of the client contract, and, accordingly, the
profitability of these agreements may be disproportionately skewed toward
later periods; the possibility of the company's Database Marketing and
Consulting segment not returning to historic levels of profitability; greater
than anticipated competition in the customer care market, causing adverse
pricing and more stringent contractual terms; risks associated with losing or
not renewing significant client relationships, or early termination of a
client agreement; the company's ability to close new business in 2004 and fill
excess capacity; consumers' concerns or adverse publicity regarding the
products of the company's clients; higher than anticipated start-up costs or
lead times associated with new ventures or business in new markets; execution
risks associated with performance-based pricing metrics in certain client
agreements; execution risks associated with achieving targeted annualized cost
reductions; the company's ability to find cost effective locations, obtain
favorable lease terms, and build or retrofit facilities in a timely and
economic manner; risks associated with attracting and retaining cost-effective
labor at the company's customer management centers; the possibility of
additional asset impairments and restructuring charges; risks associated with
weather-related events; changes in foreign currency exchange rates; economic
or political changes affecting the countries in which the company operates;
changes in accounting policies and practices promulgated by standard setting
bodies; and, new legislation or government regulation that impacts the
customer care industry.
Please refer to the company's filings with the Securities and Exchange
Commission, including the company's Annual Report on Form 10-K for the year
ended 2003 and other more recent SEC filings, for a detailed discussion of
factors discussed above and other important factors that may impact the
company's business, results of operations, financial condition, and cash
flows. The company assumes no obligation to update its forward-looking
statements to reflect actual results or changes in factors affecting such
forward-looking statements.
SOURCE TeleTech Holdings, Inc.
-0- 10/04/2004
/CONTACT: Investor Relations, Karen Breen, +1-303-397-8592, or Dan
Campbell, +1-303-397-8634, or Media Relations, Julie Lucas, +1-303-397-8555,
all of TeleTech Holdings, Inc./
/Photo: http://www.newscom.com/cgi-bin/prnh/20010130/TELETECHLOGO
PRN Photo Desk, photodesk@prnewswire.com /
/Web site: http://www.teletech.com /
(TTEC)
CO: TeleTech Holdings, Inc.
ST: Colorado
IN: FIN
SU:
CM
-- LAM013 --
1895 10/04/2004 16:15 EDT http://www.prnewswire.com
